Instructions: (a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 2014. SHAWS GARDEN Income Statement For the Month Ended May 31, 2014 Revenues Account title Amount Expenses Account title Amount Account title Amount Account title Amount Account title Amount Total expenses Amount Net income Amount SHAWS GARDEN Retained Earnings Statement For the Month Ended May 31, 2014 Retained earnings, May 1 Amount Add: Account title Amount Amount Less: Account title Amount Retained earnings, May 31 Amount SHAWS GARDEN Balance Sheet May 31, 2014 Assets Account title Amount Account title Amount Account title Amount Total assets Amount Liabilities and Stockholders' Equity Liabilities Account title Amount Account title Amount Total liabilities Amount Stockholders' equity Account title Amount Account title Amount Total stockholders' equity Amount Total liabilities and stockholders' equity Amount (b) Briefly discuss whether the companys first month of operations was a success. Enter text answer here. (c) Discuss the companys decision to distribute a dividend. Enter text answer here. P1-4B, Determine items to be included in a statement of cash flows, prepare a cash flow statement and discuss the results. Instructions: (a) Determine which items should be included in a statement of cash flows and then prepare the statement for Preacher Corporation. Enter text answer here. PREACHER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Activity Amount Activity Amount Net cash provided by operating activities Amount Cash flows from investing activities Activity Amount Activity Amount Net cash used by investing activities Amount Cash flows from financing activities Activity Amount Activity Amount Net cash provided by financing activities Amount Net increase in cash Amount (b) Comment on the adequacy of net cash provided by operating activities to fund the companys investing activities and dividend payments. Enter text answer here. (Continued) P2-7B, Compute values and ratios for the following; discuss results. Instructions: (a) For each company, compute these values and ratios: be sure to show your computations! Home Depot Lowes Working Capital Amount Amount Current ratio (round to two decimal places) Amount Amount Debt to total assets ratio Amount Amount Free cash flow Amount Amount Earnings per share Amount Amount (b) Compare the liquidity, profitability and solvency of the two companies. Enter text answer here.